Jammu and Kashmir Bank is one the most popular banks in the state of J&K. The bank is the only private player designated and authorized by the Reserve Bank of India, to collect CBDT taxes and to carry out banking functions of the Central Government. The bank seeks to lend as much as possible in the home state which will lead to higher margins. Jammu and Kashmir bank believes in not just easy banking but also in social empowerment of customers. Jammu and Kashmir Bank was established in the year 1938 and is a listed bank on the National Stock Exchange as well as the Bombay Stock Exchange.
CRISL and Standard and Poor rating agencies have given highest rating of P1+ to the bank which indicates greatest level of safety. The bank aims to foster the economic growth of the nation while taking steps also in the direction of overall socio-economic development of the country.
The bank indulges in a wide variety of banking and financial products as well as services. Some of these are retail banking, private banking, and investment banking and so on. Fixed deposits from Jammu and Kashmir bank are a popular category of financial products which fetch competitive rates.
Who all are eligible to open a Fixed Deposit with Jammu and Kashmir Bank?
Listed below are all the entities that can open a fixed deposit account with Jammu and Kashmir Bank.
- An individual in his/her name
- Joint account holders
- Minor under guarantee of parents/guardian.
- Sole Proprietorship firms , Partnership firms
- Private and Public Limited Companies
- Clubs, Societies, Associations, Trusts etc.
What are the various fixed deposit schemes offered by Jammu and Kashmir Bank?
Jammu and Kashmir Bank offers various types of fixed deposit schemes to suit the pocket and interests of a large customer base. Here are a few of the popular deposit schemes from the bank.
- Fixed Deposits Scheme
This is the standard fixed deposit scheme with a tenure that ranges from 7 days to 10 years. The interest rates if fixed and pre-mature withdrawal is allowed as per bank’s discretion.
- Cash Certificate Scheme
This deposit can be opened with a starting amount of ₹ 1000 and the interest applicable is compounded quarterly. The tenure of the deposit can be anywhere between 6 months to 10 years
- Open -Ended Deposit Scheme
The main feature of this deposit is pre-mature withdrawal without any penalty. The deposit tenure is between 6 months and 10 years. The interest rate is fixed and is compounded quarterly.
- Flexi Deposit Scheme
This deposit scheme is also for 6 months and above for up to 10 years. The most distinguishing factor of this scheme is that the depositor is eligible for a loan of up to 90% of the deposit amount and that too without any loan documents processing and any other formalities.
- Mehandi Deposit Scheme
This deposit scheme is meant specifically for minor boys and girls. The tenure for these deposits can be chosen from 5, 7, 10, 12, or 15 years. The rate of interest is fixed and is compounded quarterly. The interest is paid out on maturity of the deposit.
- Tax Saver Term Deposit Scheme
As the name suggests this deposit scheme aims at helping customers save income tax. Hence, the deposit tenure available is 5 years or 10 years. The deposit amount starts from ₹ 1000 and its subsequent multiples. These schemes fetch a tax waiver under the Income Tax Act 1956.
What is the minimum amount that can be used to open a Fixed Deposit with Jammu and Kashmir Bank?
The minimum amount required to open a Jammu and Kashmir fixed deposit account is usually ₹ 1000, however, this amount may vary depending upon the kind of deposit scheme you wish to avail.
What is the maximum deposit amount that can used to open a Fixed Deposit scheme with Jammu and Kashmir Bank?
There is no hard limit on the maximum deposit amount except for certain deposit schemes. However, deposits higher than a certain amount are subject to certain regulatory checks from the bank.
What is the minimum and maximum deposit period available for Fixed Deposits of Jammu and Kashmir Bank?
The deposit period depends on the type of deposit scheme that you plan to avail. Here is a list of the schemes with their corresponding tenures.
- Fixed Deposits Scheme – 7 days to 10 years
- Cash Certificate Scheme – 6 months to 10 years
- Open -Ended Deposit Scheme – 6 months to 10 years
- Flexi Deposit Scheme – 6 months to 10 years
- Mehandi Deposit Scheme – 5, 7, 10, 12 or 15 years
- Tax Saver Term Deposit Scheme – 5 to 10 years
- Smart Saver Term Deposit Scheme – 1 to 10 years
What is the procedure of opening a Jammu and Kashmir Bank fixed deposit?
The process for opening a fixed deposit with Jammu and Kashmir Bank is very simple. You need to walk in to the nearest bank branch and obtain the deposit opening form. A duly-filled copy of this form along with the required documents are enough to get you a deposit account with Jammu and Kashmir Bank.
What are the rates of interest applicable on fixed deposits by Jammu and Kashmir Bank?
The applicable interest rates on fixed deposits vary with the deposit tenure. As a general trend, longer tenures fetch higher rates. The rates are low at 4.5% for very short deposit period like 7 days to 30 days. For 31 days to 45 days, the interest is 5% per annum. Between 46 to 90 days, the rate of interest is 7%. 91 days to 180 days period fetches a rate of 7.75%. Similarly, 8.5% is the rate for deposits with tenures of 181 days to 1 year. Deposits between 1-3 years earn a rate of 9% whereas those between 5 to 10 years are rewarded at a rate of 8.5% per annum.
Are tax-saver Fixed Deposits offered by Jammu and Kashmir Bank?
Yes. Tax Saver Term Deposit scheme is specifically meant to handle the issue of income tax deduction under the Income Tax Act 1956.
Are the deposit schemes of Jammu and Kashmir Bank taxable?
Yes. Fixed Deposits from Jammu and Kashmir Bank are taxable and are basically split up into two categories. First is those for which the deposit holder has furnished the PAN number while the other is for which the deposit holder has not furnished the PAN number. In case the interest on the FD is equal to or more than ₹ 10000 in a year, income tax at 10% is deducted. However, if the interest received in a year is more than ₹ 10000 and the PAN number has not been provided then a tax of 20% on the interest received is charged.
What are some of the key distinguishing features of deposits by Jammu and Kashmir Bank?
- Extremely competitive rates of interest
- Hosts of schemes to choose from
- Flexibility of pre-withdrawal
- Loan options available against fixed deposits with the bank
- Quarterly compounded rates on several schemes
Can I avail a loan from Jammu and Kashmir Bank in lieu of a fixed deposit that I hold with the bank?
Yes. Loans can be availed from Jammu and Kashmir Bank against deposits that are held with the bank. However, it depends solely on the discretion of the bank and the loan amount is generally a maximum of 90% of the deposit amount.
Are there any special interest rates on fixed deposits for senior citizens?
Yes. 0.5% higher rates are offered to senior citizens who avail any of the deposit schemes of Jammu and Kashmir Bank.
Does Jammu and Kashmir Bank offer credit cards against a Fixed Deposit held by a customer with the bank?
No. Currently, Jammu and Kashmir Bank does not offer any credit card to fixed deposit holders with the bank.
Does Jammu and Kashmir Bank offer Fixed Deposits to NRIs?
Yes, Jammu and Kashmir Bank offers two Fixed Deposit options to NRIs. NRIs can choose to invest in either the Non-Resident Ordinary (NRO) Fixed Deposit or the Non-Resident External (NRE) Fixed Deposit.
What is the term period of NRE and NRO Fixed Deposits?
A NRE Fixed Deposit can be opened for a minimum period of 1 year and can have a maximum term of 3 years.
A NRO Fixed Deposit can be opened for a minimum period of 7 days to a maximum term of 120 months.
When is the interest earned on NRI Fixed Deposits credited?
The interest earned on NRE and NRO Fixed Deposits is paid or credited quarterly, in the months of March, June, September and December.
Are Premature Withdrawals of Fixed Deposits permitted?
Yes, Jammu and Kashmir Bank allows premature withdrawals of Fixed Deposits subject to certain conditions. There is no penalty imposed on premature withdrawals for renewal at better interest rates. Other premature withdrawals are subjected to a penalty as decided by the bank.